As interest is recorded on a bank loan payable, the Interest Expense account is
A)increased; the Bank Loan Payable account is increased.
B)increased; the Bank Loan Payable account is decreased.
C)increased; the Interest Payable account is increased.
D)decreased; the Interest Payable account is increased.

Question

Quizplus · Accepted Answer

Interest expense is recorded as an increase in the Interest Expense account and an increase in the Interest Payable account, reflecting the obligation to pay interest.

As Interest Is Recorded on a Bank Loan Payable, the Interest